Silver prices manage to hold above Rs 70,000/kg ahead of FOMC minute, weaker dollar

Source: Reuters

Silver prices rose for the second consecutive day on July 7 as investors await US FOMC June meeting minutes later in the day to gauge interest rate trajectory. The precious metal had fallen 1.37 percent yesterday on the MCX.

The white metal extended gains to trade at day’s high after a gap-up start tracking the strong global trend.

The semi-precious metal has been trading higher than 5, 20, 100 and 200 days’ moving averages but lower than the 50-day moving averages on the daily chart. The momentum indicator Relative Strength Index (RSI) is at 52.73, which indicates sideways movement in the price.

Silver holdings in iShares ETF were unchanged for the second day at 17,353.61 tonnes. The fund NAV is trading at a discount of 1.78 percent.

The US dollar index slightly lower to 92.50, down 0.04 percent against the major cross.

Kshitij Purohit, Product Manager, Currency & Commodities, CapitalVia Global Research Limited said, “MCX Silver future has been trading in sideways to marginally bearish momentum, sustaining below the resistance line of 15-SMA of intraday chart placed at Rs 69,950. The price has declined by 2.38 percent as LBMA Silver spot slipped through $26 in the previous session.”

The spot gold/silver ratio currently stands at 68.45 to 1 indicating that gold has outperformed silver.

MCX Bulldesk increased 177 points or 1.18 percent, at 15,216 at 15:32. The index tracks the real-time performance of MCX Gold and MCX Silver futures.

In the futures market, silver for September delivery touched an intraday high of Rs 70,097 and a low of Rs 69,466 per kg on the MCX. So far in the current series, the precious metal has touched a low of Rs 67,700 and a high of Rs 75,215.

Silver delivery for the September contract surged Rs 526, or 0.76 percent to Rs 70,038 per kg at 15:34 hours with a business turnover of 9,979 lots. The same for the December contract jumped Rs 444, or 0.63 percent, to Rs 71,333 per kg with a turnover of 136 lots.

The value of September and December’s contracts traded so far is Rs 595.36 crore and Rs 7.04 crore, respectively.

Similarly, the Silver Mini contract for August edged higher Rs 474, or 0.68 percent at Rs 70,097 on a business turnover of 11,786 lots.

At 1008 (GMT), the precious metal gained 1.23 percent and quoting at $26.50 an ounce in New York.

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